Guggenheim Reiterates “Buy” Rating for Dynatrace (NYSE:DT)

Dynatrace (NYSE:DT)‘s stock had its “buy” rating reissued by analysts at Guggenheim in a research report issued on Tuesday,Benzinga reports. They currently have a $68.00 price objective on the stock. Guggenheim’s price objective indicates a potential upside of 83.07% from the stock’s current price.

Several other research firms have also recently issued reports on DT. Weiss Ratings reiterated a “hold (c)” rating on shares of Dynatrace in a research report on Monday, December 29th. Keefe, Bruyette & Woods upgraded shares of Dynatrace to a “buy” rating in a report on Monday. BMO Capital Markets decreased their price target on shares of Dynatrace from $56.00 to $45.00 and set an “outperform” rating on the stock in a research note on Monday. UBS Group set a $51.00 price objective on Dynatrace in a research report on Thursday, November 6th. Finally, Stifel Nicolaus set a $51.00 target price on Dynatrace in a research report on Monday. Twenty analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $52.52.

Dynatrace Stock Up 0.9%

Shares of Dynatrace stock opened at $37.15 on Tuesday. The company has a market capitalization of $11.20 billion, a price-to-earnings ratio of 60.89, a PEG ratio of 2.90 and a beta of 0.84. The stock’s 50-day simple moving average is $41.47 and its 200-day simple moving average is $46.00. Dynatrace has a 52 week low of $32.83 and a 52 week high of $63.00.

Dynatrace (NYSE:DT) last released its earnings results on Monday, February 9th. The company reported $0.44 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.41 by $0.03. Dynatrace had a return on equity of 9.75% and a net margin of 9.55%.The firm had revenue of $515.47 million during the quarter, compared to analysts’ expectations of $506.31 million. During the same quarter last year, the business posted $0.37 earnings per share. The firm’s revenue was up 18.2% on a year-over-year basis. Dynatrace has set its FY 2026 guidance at 1.670-1.690 EPS and its Q4 2026 guidance at 0.380-0.390 EPS. On average, equities analysts expect that Dynatrace will post 0.68 earnings per share for the current year.

Dynatrace announced that its Board of Directors has authorized a stock buyback program on Monday, February 9th that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the company to purchase up to 9.8% of its shares through open market purchases. Shares buyback programs are typically a sign that the company’s board of directors believes its stock is undervalued.

Insider Buying and Selling

In other news, CAO Daniel S. Yates sold 2,000 shares of the business’s stock in a transaction that occurred on Monday, November 17th. The stock was sold at an average price of $46.69, for a total transaction of $93,380.00. Following the transaction, the chief accounting officer owned 23,380 shares of the company’s stock, valued at approximately $1,091,612.20. The trade was a 7.88% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, EVP Dan Zugelder sold 7,505 shares of the firm’s stock in a transaction on Wednesday, December 10th. The stock was sold at an average price of $45.27, for a total value of $339,751.35. Following the completion of the sale, the executive vice president owned 8,925 shares of the company’s stock, valued at approximately $404,034.75. This represents a 45.68% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 9,843 shares of company stock worth $448,124. Company insiders own 0.57% of the company’s stock.

Institutional Investors Weigh In On Dynatrace

Several hedge funds and other institutional investors have recently made changes to their positions in DT. Wellington Management Group LLP lifted its holdings in shares of Dynatrace by 719.3% in the 3rd quarter. Wellington Management Group LLP now owns 7,340,127 shares of the company’s stock worth $355,629,000 after acquiring an additional 6,444,262 shares during the last quarter. Scge Management L.P. purchased a new stake in Dynatrace in the 2nd quarter worth about $155,858,000. Pictet Asset Management Holding SA lifted its stake in Dynatrace by 16.5% in the fourth quarter. Pictet Asset Management Holding SA now owns 14,648,533 shares of the company’s stock worth $634,985,000 after purchasing an additional 2,076,990 shares during the last quarter. Northwestern Mutual Wealth Management Co. lifted its stake in Dynatrace by 123,910.9% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 1,881,245 shares of the company’s stock worth $81,533,000 after purchasing an additional 1,879,728 shares during the last quarter. Finally, Norges Bank purchased a new position in shares of Dynatrace during the second quarter valued at approximately $87,620,000. Hedge funds and other institutional investors own 94.28% of the company’s stock.

Key Headlines Impacting Dynatrace

Here are the key news stories impacting Dynatrace this week:

• Positive Sentiment: Q3 beat-and-raise: Dynatrace reported revenue of $515.5M (+18% Y/Y), non-GAAP EPS of $0.44 (vs. $0.41 est.) and raised full‑year targets — evidence of accelerating recurring revenue and stronger-than-expected demand. Dynatrace’s Earnings Win Makes One Thing Clear: This Software Is Essential
• Positive Sentiment: $1.0 billion buyback: The board authorized up to ~$1B (≈9.8% of shares), signaling management confidence, reducing share count, and providing tangible capital return that supports EPS and a near‑term price floor. Share Repurchase Program Announced by Dynatrace (NYSE:DT) Board of Directors
• Positive Sentiment: AI & product expansion: Management pushed agentic AI/observability messaging (Dynatrace Intelligence) and recent DevCycle integration, positioning the platform as essential for AI reliability and creating new monetization paths. This supports upside to ARR and customer expansion. Dynatrace (DT) Navigates Market Skepticism With Product Expansion
• Neutral Sentiment: Strong customer economics: ARR ~ $1.97B (≈20% Y/Y), NRR ~111% and high gross retention — metrics that support long‑term recurring revenue but may already be partially priced in. Dynatrace: Growth Should Start To Accelerate
• Neutral Sentiment: Earnings call & transcript detail execution and product road map; useful for confirming management commentary on ARR, margins and buyback pacing. Dynatrace Inc (DT) Q3 2026 Earnings Call Highlights: Strong Growth and Strategic Advancements
• Neutral Sentiment: Bullish research remains: Guggenheim reaffirmed a buy and KeyCorp raised its PT — these keep upside narratives alive but the analyst views are mixed. Dynatrace buy rating reaffirmation (Guggenheim)
• Negative Sentiment: Analyst cuts and valuation pressure: Multiple firms cut price targets (e.g., Morgan Stanley, Wells Fargo, Scotiabank, BTIG) citing compressed multiples in the sector — a headwind that can cap near‑term upside despite good fundamentals. DT Price Target Lowered by Morgan Stanley
• Neutral Sentiment: Valuation vs. peers: Some commentary argues DT is undervalued relative to peers (Datadog) given ARR growth and free cash flow, but market still prices the stock more conservatively — a potential medium‑term catalyst if multiples re‑rate. Dynatrace Is Still Growing Quickly Despite A Conservative Valuation

About Dynatrace

Dynatrace is a global software intelligence company specializing in application performance management (APM), cloud infrastructure monitoring, and digital experience management. Its flagship offering, the Dynatrace Software Intelligence Platform, leverages artificial intelligence to provide real-time observability across distributed environments, including on-premises data centers, private clouds, public clouds and hybrid deployments. Organizations rely on Dynatrace to detect anomalies, troubleshoot performance issues and optimize end-user experiences through automated root-cause analysis powered by the company’s engine, Davis.

The Dynatrace platform comprises modules for full-stack application monitoring, digital experience monitoring, infrastructure monitoring and business analytics.